(0830 ET/1330 GMT) The Federal Reserve Bank of New York is expected to report that manufacturing activity in New York State eased to 17.5 in February from 17.7 in January.

(0830 ET/1330 GMT) The U.S. producer price index is likely to have increased 0.4 percent in January, while in the 12 months through the same period, it is expected to have advanced 2.5 percent. PPI excluding food and energy probably edged up 0.2 percent after falling 0.1 percent in December.

(0830 ET/1330 GMT) The number of Americans filing for unemployment benefits is likely to have increased by 9,000 to a seasonally adjusted 230,000 for the week ended Feb. 9, while continuing claims for the week ended Feb. 2 is expected to rise to 1.925 million from previous 1.923 million.

(0830 ET/1330 GMT) Philadelphia Federal Reserve manufacturing survey is likely to show that business activity decreased to 21.1 in February from 22.2 in January.

(0830 ET/1330 GMT) The Statistics Canada releases employment report for January. The economy posted a drop of 7,100 jobs in the month of December.

(0915 ET/1415 GMT) The Federal Reserve is likely to report that industrial production rose 0.2 percent in January, after increasing 0.9 in the prior month.

(0915 ET/1415 GMT) The Federal Reserve Board is expected to report that capacity utilization edged up to 78.0 percent in January from 77.9 percent in December.

(1000 ET/1500 GMT) The National Association of Home Builders (NAHB) is expected to report that U.S. Housing Market Index remained unchanged at 72 in February.

DXY: The dollar index slumped to an over 2-week low on worries about the U.S. government’s finances after a White House-led spending splurge and recent corporate tax cuts. The greenback against a basket of currencies traded 0.3 percent down at 88.77, having touched a low of 88.59, its lowest since Feb. 2. FxWirePro’s Hourly Dollar Strength Index stood at -76.74 (Slightly Bearish) by 1000 GMT.

EUR/USD: The euro rallied to an over 2-week high as the greenback tumbled to recent low after the U.S. national debt topped $20 trillion, while the 2019 fiscal deficit is projected at near $1 trillion. The European currency traded 0.3 percent up at 1.2486, having touched a high of 1.2510 earlier, its highest since Jan. 2. FxWirePro’s Hourly Euro Strength Index stood at 35.94 (Neutral) by 1000 GMT. Immediate resistance is located at 1.2523, a break above targets 1.2555. On the downside, support is seen at 1.2356 (10-DMA), a break below could drag it lower 1.2245 (Feb 7 Low).

USD/JPY: The dollar slumped to a 15-month low against the Japanese yen as worries over twin deficits in the United States mounted amid a government spending splurge and large corporate tax cuts. The major was trading 0.5 percent down at 106.46, having hit a low of 106.17 earlier, its lowest since Nov. 2016. FxWirePro’s Hourly Yen Strength Index stood at 73.03 (Bullish) by 1000 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. producer price index, unemployment benefit claims and industrial production report for further momentum. Immediate resistance is located at 107.12 (78.6% retracement of 110.48 and 106.17), a break above targets 107.83 (61.8% retracement). On the downside, support is seen at 106.10, a break below could take it lower 105.80.

GBP/USD: Sterling advanced to 10-day high on the back of a broadly weakened dollar and on growing expectations that the Bank of England will raise rates faster than previously thought. The major traded 0.5 percent up at 1.4062, having hit a high of 1.4077 earlier, it’s highest since Feb 2. FxWirePro’s Hourly Sterling Strength Index stood at 65.74 (Bullish) by 0500 GMT. Immediate resistance is located at 1.4095, a break above could take it near 1.4150 (Feb 5 High). On the downside, support is seen at 1.3892 (5-DMA), a break below targets 1.3764 (Feb 9 Low). Against the euro, the pound was trading 0.2 percent up at 88.75 pence, having hit a low of 89.19 pence the day before, it’s lowest since Jan. 12.

USD/CHF: The Swiss franc slumped to a 2-1/2 year low, as the greenback was weighed down by bearish pressure. The major trades 0.4 percent down at 0.9252, having touched a low of 0.9229 earlier, it’s lowest since Jun 2015. FxWirePro’s Hourly Swiss Franc Strength Index stood at -86.51 (Slightly Bearish) by 1000 GMT. On the higher side, near-term resistance is around 0.9357 (5-DMA) and any break above will take the pair to next level till 0.9417 (21-DMA). The near-term support is around 0.9220 and any close below that level will drag it lower 0.9200.

Equities Recap

European shares recovered as investors turned their focus back on company earnings, while the greenback slumped to an over 2-week low on U.S. deficit worries.

Crude oil prices rose to a 1-week peak, boosted by a weak dollar and Saudi comments that it would rather see an undersupplied market than end a deal with OPEC and Russia to withhold production. International benchmark Brent crude was trading 0.6 percent up at $64.67 per barrel by 0958 GMT, having hit a high of $65.12 earlier, its highest since Jan. 8. U.S. West Texas Intermediate was trading 0.8 percent up at $61.14 a barrel, after rising as high as $61.52 earlier, its strongest since Jan. 8.

Gold prices rose as the dollar weakened and investors rushed into the safe-haven metal as a hedge against inflation after data showed a rise in U.S. consumer prices. Spot gold rose 0.3 percent at $1,354.30 an ounce as of 1002 GMT after touching its highest level since Jan. 26 at $1,355.37 on Wednesday. U.S. gold futures were down 0.1 percent at $1,356.8 per ounce on Thursday.

Treasuries Recap

The U.S. Treasuries gained ahead of the country’s Philadelphia Fed Manufacturing Index for the month of February and the producer price index (PP) for the same period, besides the 30-year auction, all scheduled for today at 13:30GMT and 18:00GMT respectively. The yield on the benchmark 10-year Treasuries rose a little over 1 basis point to 2.92 percent, the super-long 30-year bond yields hovered around 3.17 percent and the yield on the short-term 2-year traded 2 basis points higher at 2.19 percent.

The German bunds slumped as investors wait to watch a host of speeches from key members of the European Central Bank, later today as well as tomorrow. The German 10-year bond yields, which move inversely to its price, jumped 2-1/2 basis points to 0.78 percent, the yield on 30-year note surged 2 basis points to 1.41 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points higher at -0.49 percent.

The New Zealand 10-year government bond yields ended Thursday’s session on 4-year high note, tracking overnight movement in the U.S. counterpart after the latter’s consumer price inflation data (CPI) for the month of January, topped market expectations, adding to hopes of a Fed rate hike in the immediate future. At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, jumped 7 basis points to 3.03 percent, the yield on 20-year surged 7-1/2 basis points to 3.54 percent and the yield on short-term 2-year closed 1 basis point higher at 1.88 percent.

The Japanese government bonds remained flat in a silent trading session ahead of the Chinese Lunar New Year, as investors have largely shrugged-off the higher-than-expected industrial production for the month of December, released early today. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.06 percent, the yield on the long-term 30-year note remained flat at 0.79 percent and the yield on short-term 2-year steadied around -0.15 percent.

The Australian bonds slumped following stronger-than-expected January employment report, boosting confidence among investors that the health of the economy is in good shape. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 8-1/2 basis points to 2.919 percent, the yield on the long-term 30-year note also surged 8-1/2 basis points to 3.552 percent and the yield on short-term 2-year up 4 basis points to 2.046 percent.

DXY: The dollar index continued to decline despite a stronger-than-expected rise in U.S. consumer prices in January bolstering bets that the Federal Reserve might raise interest rates four times in 2018. The greenback against a basket of currencies traded 0.2 percent down at 88.88, having touched a low of 88.84, its lowest since Feb. 2. FxWirePro’s Hourly Dollar Strength Index stood at -84.54 (Slightly Bearish) by 0500 GMT.

EUR/USD: The euro rallied to a 10-day high as the greenback slumped to a 2-week low after a Reuters poll showed the U.S. government was wrong to cut taxes at this stage of the business cycle given the economy is near full employment. The European currency traded 0.1 percent up at 1.2457, having touched a high of 1.2473 earlier, its highest since Jan. 5. FxWirePro’s Hourly Euro Strength Index stood at 29.24 (Neutral) by 0500 GMT. Investors’ attention will remain on Eurozone trade balance and ECB officials’ speeches, ahead of U.S. producer price index, unemployment benefit claims and industrial production report. Immediate resistance is located at 1.2523, a break above targets 1.2555. On the downside, support is seen at 1.2356 (10-DMA), a break below could drag it lower 1.2245 (Feb 7 Low).

USD/JPY: The dollar slumped to a fresh 15-month low against the Japanese yen as market participants brace for further near-term weakness in the U.S. currency. The major was trading 0.4 percent down at 106.57, having hit a low of 106.30 earlier, its lowest since Nov. 2016. FxWirePro’s Hourly Yen Strength Index stood at 98.00 (Slightly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. producer price index, unemployment benefit claims and industrial production report for further momentum. Immediate resistance is located at 107.21 (78.6% retracement of 110.48 and 106.30), a break above targets 107.90 (61.8% retracement). On the downside, support is seen at 106.10, a break below could take it lower 105.80.

GBP/USD: Sterling rose to a 1-week high as Britain foreign minister Boris Johnson’s speech did not deliver any major surprises or bad news. The major traded 0.1 percent up at 1.4007, having hit a high of 1.4021 earlier, it’s highest since Feb 8. FxWirePro’s Hourly Sterling Strength Index stood at -4.02 (Neutral) by 0500 GMT. Investors’ focus will remain on the U.S. fundamental drivers, amid a lack of economic data from the UK docket. Immediate resistance is located at 1.4067 (Feb 8 High), a break above could take it near 1.4150 (Feb 5 High). On the downside, support is seen at 1.3892 (5-DMA), a break below targets 1.3764 (Feb 9 Low). Against the euro, the pound was trading flat at 88.92 pence, having hit a low of 89.19 pence the day before, it’s lowest since Jan. 12.

AUD/USD: The Australian dollar surged to a 10-day high as domestic employment recorded the longest streak of gains in January, while unemployment fell a tick and female participation in the workforce climbed to an all-time high. The economy added 16,000 net new jobs, while the unemployment rate edged down to 5.5 percent, from an upwardly revised 5.6 percent in December. The Aussie trades 0.1 percent up at 0.7934, having hit a high of 0.7946 earlier; it’s highest since Feb 5. FxWirePro’s Hourly Aussie Strength Index stood at 30.24 (Neutral) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7900, a break below targets 0.7847 (5-DMA). On the upside, resistance is located at 0.7994, a break above could take it near 0.8049.

NZD/USD: The New Zealand dollar advanced to a near 2-week peak as a return of risk appetite helped offset a sharp rise in U.S. bond yields. The Kiwi trades 0.2 percent up at 0.7377, having touched a high of 0.7395, its highest level since Feb. 2. FxWirePro’s Hourly Kiwi Strength Index was at 110.39 (Highly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.7400, a break above could take it near 0.7420. On the downside, support is seen at 0.7340 a break below could drag it near 0.7308 (21-DMA).

Equities Recap

Asian shares gained after Wall Street rose on strong U.S. inflation data, while the dollar extended its losses against the yen to hit a fresh 15-month low on the U.S. economy’s strength concerns.

Crude oil prices rose to a 1-week peak, boosted by a weak dollar and by comments from Saudi Arabia that it would rather see an undersupplied market than end a deal with OPEC and Russia to withhold production. International benchmark Brent crude was trading 0.7 percent up at $64.78 per barrel by 0439 GMT, having hit a high of $64.95 earlier, its highest since Jan. 8. U.S. West Texas Intermediate was trading 0.8 percent up at $61.16 a barrel, after rising as high as $61.38 earlier, its strongest since Jan. 8.

Gold prices steadied near a 2-1/2-week high hit in the previous session, supported by a weaker dollar and as investors bet on higher U.S. inflation after a faster-than-expected rise in consumer prices last month. Spot gold inched up 0.3 percent to $1,354.15 an ounce by 0445 GMT, after touching its highest level since Jan. 26 at $1,355.37 on Wednesday. U.S. gold futures were down 0.2 percent to $1,355 per ounce.

Treasuries Recap

The 10-year U.S Treasury yield stood at 2.913 percent higher by 0.001 bps, while 5-year yield was 0.016 bps up at 2.655 percent.

The Japanese government bonds remained flat in a silent trading session ahead of the Chinese Lunar New Year, as investors have largely shrugged-off the higher-than-expected industrial production for the month of December, released early today. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.06 percent, the yield on the long-term 30-year note remained flat at 0.79 percent and the yield on short-term 2-year steadied around -0.15 percent.

The Australian bonds slumped following stronger-than-expected January employment report, boosting confidence among investors that the health of the economy is in good shape. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 8-1/2 basis points to 2.919 percent, the yield on the long-term 30-year note also surged 8-1/2 basis points to 3.552 percent and the yield on short-term 2-year up 4 basis points to 2.046 percent.

The Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year was down 8.5 Canadian cents to yield 1.829 percent and the 10-year declined 27 Canadian cents to yield 2.374 percent.

(0830 ET/1330 GMT) The U.S. Commerce Department is expected to report that retail sales edged up 0.2 percent in January after advancing 0.4 percent in December. While excluding autos, retail sales are likely to have gained 0.4 percent, after posting similar gains in the previous month.

(0830 ET/1330 GMT) The U.S. consumer price index likely increased 0.3 percent in January after rising 0.1 percent in December, while in the 12 months through January, the CPI is expected to have risen 1.7 percent. Excluding food and energy, the core CPI probably rose 0.2 percent, matching the gain in the previous month.

(1000 ET/1500 GMT) The U.S. Commerce Department is expected to report that business inventories rose 0.3 percent in December, after rising 0.4 percent in November.

(1850 ET/2350 GMT) Japan’s machinery orders are likely to have decreased 2.3 percent for the month of December after posting a rise of 5.7 percent in November.

Key Events Ahead

No Significant Events Scheduled

FX Beat

DXY: The dollar index declined to a 1-week low as investors anxiously awaited the U.S. inflation data for clues on the pace of interest rate hikes. The greenback against a basket of currencies traded 0.1 percent down at 89.70, having touched a high of 90.57 on Thursday, its highest since Jan. 23. FxWirePro’s Hourly Dollar Strength Index stood at 10.97 (Neutral) by 1000 GMT.

EUR/USD: The euro rose to a 1-week high after data showed strong exports helped the German economy to continue its solid upswing at the end of 2017 and grow by 0.6 percent on the quarter from October through December. The European currency traded 0.1 percent up at 1.2360, having touched a high of 1.2392 earlier, its highest since Jan. 7. FxWirePro’s Hourly Euro Strength Index stood at 20.33 (Neutral) by 1000 GMT. Immediate resistance is located at 1.2402 (38.2% retracement of 1.2522 and 1.2205), a break above targets 1.2475. On the downside, support is seen at 1.2314 (Feb 6 Low), a break below could drag it lower 1.2245 (Feb 7 Low).

USD/JPY: The dollar hit a 15-month low against the Japanese yen, as investors remained nervous ahead of key U.S. inflation numbers due later amid a fragile recovery in global equity markets. The major was trading 0.4 percent down at 107.40, having hit a low of 106.84 earlier, its lowest since Nov. 2016. FxWirePro’s Hourly Yen Strength Index stood at 116.66 (Highly Bullish) by 1000 GMT. Immediate resistance is located at 107.63 (78.6% retracement of 110.48 and 106.84), a break above targets 108.23 (61.8% retracement). On the downside, support is seen at 106.60, a break below could take it lower 106.30.

GBP/USD: Sterling eased below the 1.3900 handle and hit a five-week low against the euro, as investors turned cautious ahead of a speech on Brexit by Britain’s foreign minister Boris Johnson, who is also a prominent supporter of the campaign to leave the European Union. The major traded 0.2 percent down at 1.3870, having hit a low of 1.3764 on Friday, it’s lowest since Jan 17. FxWirePro’s Hourly Sterling Strength Index stood at -125.52 (Slightly Bearish) by 1000 GMT. Immediate resistance is located at 1.3991 (21-DMA), a break above could take it near 1.4063. On the downside, support is seen at 1.3764 (Feb 9 Low), a break below targets 1.3700. Against the euro, the pound was trading 0.2 percent down at 89.05 pence, having hit a low of 89.19 pence, it’s lowest since Jan. 12.

USD/CHF: The Swiss franc surged to a 1-week peak as investors awaited the key U.S. inflation figures for clues on the pace of future U.S. interest rate hikes. The major trades 0.2 percent down at 0.9334, having touched a high of 0.9469 on Thursday, it’s highest since Jan. 24. FxWirePro’s Hourly Swiss Franc Strength Index stood at -93.36 (Slightly Bearish) by 1000 GMT. On the higher side, near-term resistance is around 0.9432 (21-DMA) and any break above will take the pair to next level till 0.9500. The near-term support is around 0.9287 and any close below that level will drag it till 0.9256.

Equities Recap

European shares rose in early deals, boosted by strong results and German economic data, while the greenback slumped to a 1-week low ahead of a U.S. inflation report that could provide clues on the U.S. interest rate outlook.

Crude oil prices declined, extending losses for the fifth consecutive session, weighed down by lingering oversupply including rising U.S. inventories and ample physical flows. International benchmark Brent crude was trading 0.1 percent down at $62.45 per barrel by 1038 GMT, having hit a low of $61.75 on Friday, its lowest since Dec. 7. U.S. West Texas Intermediate was trading 0.3 percent down at $58.79 a barrel, after falling as low as $58.06 on Friday, its weakest since Dec. 22.

Gold prices rose for a third straight session to hit a one-week high, boosted by a weaker dollar, while investors awaited U.S. inflation data for clues on the pace of future U.S. interest rate increases. Spot gold was up 0.2 percent at $1,331.32 an ounce by 1039 GMT, after touching its highest level since Feb. 6 at $1,336.82. U.S. gold futures rose 0.3 percent to $1,334.7 per ounce.

Treasuries Recap

The U.S. Treasuries remained narrowly mixed ahead of the country’s consumer price inflation and retail sales data for the month of January, scheduled to be released today by 13:30GMT respectively. The yield on the benchmark 10-year Treasuries hovered around 2.83 percent, the super-long 30-year bond yields skid 1 basis point to 3.11 percent and the yield on the short-term 2-year traded tad higher at 2.11 percent.

The UK gilts climbed as investors await the country’s retail sales for the month of January, scheduled to be released by end of this week. The yield on the benchmark 10-year gilts, slipped 1-1/2 basis points to 1.60 percent, the super-long 30-year bond yields fell 1 basis point to 1.98 percent while the yield on the short-term 2-year slumped 2 basis points to 0.68 percent.

The German bunds rallied after the country’s fourth-quarter gross domestic product (GDP) declined compared to the previous quarter, while the consumer price inflation for the month of January remained unchanged from that in December. The German 10-year bond yields, which move inversely to its price, slumped 1-1/2 basis points to 0.73 percent, the yield on 30-year note also fell nearly 1-1/2 basis points to 1.37 percent and the yield on short-term 2-year traded flat at -0.57 percent.

The New Zealand government bonds surged at the time of closing, tracking overnight movement in the U.S. counterpart ahead of the latter’s consumer price inflation data (CPI) for the month of January, scheduled to be released later today. At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 3-1/2 basis points to 2.96 percent, the yield on 20-year plunged 4 basis points to 3.47 percent and the yield on short-term 2-year closed 1/2 basis point lower at 1.87 percent.

The Japanese government bonds gained, following weakness in the country’s fourth-quarter gross domestic product (GDP), with the 10-year yield hitting over a month’s low. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slipped 1/2 basis point to 0.06 percent, the yield on the long-term 30-year note fell 1 basis point to 0.79 percent and the yield on short-term 2-year remained tad lower at -0.15 percent.

The Australian bonds jumped during early Asian session, tracking similar movement in the U.S. Treasuries ahead of the employment report for the month of January, scheduled to be released on February 15. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 2-1/2 basis points to 2.83 percent, the yield on the long-term 30-year note plunged 3 basis points to 3.47 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points lower at 1.99 percent.

DXY: The dollar index tumbled to a 1-week low ahead of U.S. inflation report, which is expected to show seasonally adjusted U.S. consumer price index at 0.3 percent in January versus 0.1 percent in December. The greenback against a basket of currencies traded 0.3 percent down at 89.51, having touched a high of 90.57 on Thursday, its highest since Jan. 23. FxWirePro’s Hourly Dollar Strength Index stood at -154.87 (Highly Bearish) by 0500 GMT.

EUR/USD: The euro rallied to a 1-week high as markets awaited the release of the Eurozone flash GDP estimate, in the wake of optimistic Eurozone growth outlook. The European currency traded 0.2 percent up at 1.2379, having touched a high of 1.2392 earlier, its highest since Jan. 7. FxWirePro’s Hourly Euro Strength Index stood at 14.77 (Neutral) by 0500 GMT. Investors’ attention will remain on Eurozone preliminary gross domestic product, ahead of U.S. retail sales and consumer price index. Immediate resistance is located at 1.2402 (38.2% retracement of 1.2522 and 1.2205), a break above targets 1.2475. On the downside, support is seen at 1.2314 (Feb 6 Low), a break below could drag it lower 1.2245 (Feb 7 Low).

USD/JPY: The dollar slumped to a 15-month low against the Japanese yen, as investors remained on edge ahead of key U.S. inflation numbers later in the day. The major was trading 0.6 percent down at 107.22, having hit a low of 106.84 earlier, its lowest since Nov. 2016. FxWirePro’s Hourly Yen Strength Index stood at 186.84 (Highly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. retail sales and consumer price index for further momentum. Immediate resistance is located at 107.63 (78.6% retracement of 110.48 and 106.84), a break above targets 108.23 (61.8% retracement). On the downside, support is seen at 106.60, a break below could take it lower 106.30.

GBP/USD: Sterling rose to a 5-day high after data released on Wednesday showed British inflation unexpectedly stayed close to its highest levels in six years in January, firming up investors’ speculations that the Bank of England will raise interest rates again in May. The major traded 0.1 percent up at 1.3898, having hit a low of 1.3764 on Friday, it’s lowest since Jan 17. FxWirePro’s Hourly Sterling Strength Index stood at -76.52 (Slightly Bearish) by 0500 GMT. Investors’ focus will remain on the UK producer price index and consumer price index, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.3991 (21-DMA), a break above could take it near 1.4063. On the downside, support is seen at 1.3764 (Feb 9 Low), a break below targets 1.3700. Against the euro, the pound was trading 0.2 percent down at 89.03 pence, having hit a low of 89.10 pence last week, it’s lowest since Jan. 17.

AUD/USD: The Australian dollar surged to a 1-week high, while investors awaited the U.S. inflation data due later in the day which could reignite fears of faster rate hikes in the world’s largest economy. The Aussie trades 0.3 percent up at 0.7881, having hit a low of 0.7758 on Friday; it’s lowest since Dec. 27. FxWirePro’s Hourly Aussie Strength Index stood at 51.92 (Bullish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7826 (5-DMA), a break below targets 0.7758 (Feb 9 Low). On the upside, resistance is located at 0.7905, a break above could take it near 0.7962 (21-DMA).

NZD/USD: The New Zealand dollar advanced to a 1-week peak after the Reserve Bank of New Zealand’s quarterly survey of expectations showed business managers forecast annual inflation to average 2.11 percent over the coming two years, up from 2.02 percent in the previous survey. The Kiwi trades 0.5 percent up at 0.7311, having touched a low of 0.7176 on Thursday, its lowest level since Jan. 10. FxWirePro’s Hourly Kiwi Strength Index was at 97.98 (Slightly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.7350, a break above could take it near 0.7405. On the downside, support is seen at 0.7176 (Feb. 8 Low), a break below could drag it near 0.7100.

Equities Recap

Asian shares traded in a volatile market, while the greenback eased to a 1-week low as investors’ nerves were strained ahead of a U.S. inflation report that could provide clues on the pace of future U.S. interest rate increases.

Crude oil prices rose after falling to multi-week lows in the previous session, supported by healthy economic growth and expectations that a weaker dollar could spur fuel demand. International benchmark Brent crude was trading 0.4 percent up at $62.78 per barrel by 0441 GMT, having hit a low of $61.75 on Tuesday, its lowest since Dec. 7. U.S. West Texas Intermediate was trading 0.4 percent up at $59.16 a barrel, after falling as low as $58.06 on Friday, its weakest since Dec. 22.

Gold prices rose for a third straight session to touch a one-week high, supported by a weaker dollar, while investors awaited U.S. inflation data for clues on the pace of future U.S. interest rate increases. Spot gold was up 0.4 percent at $1,334.44 an ounce by 0444 GMT, after touching its highest level since Feb. 6 at $1,336.82. U.S. gold futures rose 0.4 percent to $1,335 per ounce.

Treasuries Recap

The 10-year U.S Treasury yield stood at 2.816 percent lower by 0.023 bps, while 5-year yield was 0.019 bps down at 2.530 percent.

The Japanese government bonds gained, following weakness in the country’s fourth-quarter gross domestic product (GDP), with the 10-year yield hitting over a month’s low. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slipped 1/2 basis point to 0.06 percent, the yield on the long-term 30-year note fell 1 basis point to 0.79 percent and the yield on short-term 2-year remained tad lower at -0.15 percent.

The Australian bonds jumped during early Asian session, tracking similar movement in the U.S. Treasuries ahead of the employment report for the month of January, scheduled to be released on February 15 by 00:30GMT for further insight into the debt market. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 2-1/2 basis points to 2.83 percent, the yield on the long-term 30-year note plunged 3 basis points to 3.47 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points lower at 1.99 percent.

The New Zealand government bonds surged at the time of closing, tracking overnight movement in the U.S. counterpart ahead of the latter’s consumer price inflation data (CPI) for the month of January, scheduled to be released later today. At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 3-1/2 basis points to 2.96 percent, the yield on 20-year plunged 4 basis points to 3.47 percent and the yield on short-term 2-year closed 1/2 basis point lower at 1.87 percent.

The Canadian government bond prices were higher across the yield curve, with the two-year up 0.5 Canadian cent to yield 1.781 percent and the 10-year rising 14 Canadian cents to yield 2.32 percent.

EUR/USD is likely to find support at 1.2282 levels and currently trading at 1.2349 levels. The pair has made session high at 1.2370 and hit lows at 1.2308 levels. Euro gained higher against the dollar on Tuesday as gains in global equity markets encouraged traders to sell the dollar and tiptoe back into riskier assets. The dollar was down as much as half a percent against a basket of currencies, reversing some of its gains of last week, when it enjoyed its performance since 2016. A sharp sell-off in stock markets last week drove traders to unwind one of the most popular bets of the year buying the euro on expectations the European Central Bank will scale back its stimulus later this year amid a strong recovery in the bloc’s economy. Although many market players remain bullish on the euro, the currency lacks clear catalysts for further gains as a March election in Italy and a fragile coalition deal in Germany create an uncertain political backdrop. Prospects of higher inflation globally have rattled investors this month and have helped drive equity market falls. Higher inflation could prompt the U.S. Federal Reserve to tighten policy faster than expected. Alternatively, if the Fed fails to act fast enough and falls behind the curve on policy, it could end up pushing up long-term bond yields. In either scenario, traders worry that U.S. economic growth could be hampered.

GBP/USD is supported in the range of 1.3834 levels and currently trading at 1.3886 levels. It reached session high at 1.3924 and dropped to session low at 1.3860 levels. Sterling firmed against the dollar on Tuesday after data showed British inflation unexpectedly stayed close to its highest levels in six years in January, firming up investors’ bets that the Bank of England will raise interest rates again in May.The BoE surprised financial markets last week by indicating that rates could move up faster than previously expected, as the Bank wanted to bring inflation back to its target of two percent within two years rather than three. This prompted markets to price in as much as a 70 percent chance of a quarter-point rise in interest rates by May, and a roughly 50 percent chance of a further increase in rates to one percent by the end of the year – a level last seen in 2009.Tuesday’s numbers showed consumer price inflation (CPI) held at an annual rate of 3.0 percent in January, unchanged from the month before and above a consensus forecast of 2.9 percent. Sterling jumped to as high as $1.3924 after the data, up from $1.3886 beforehand. It was trading at $1.3886 in the late US session, up 0.4 percent on the day, having climbed more than six percent against the dollar over the past three months.

USD/CAD is supported at 1.2553 levels and is trading at 1.2593 levels. It has made session high at 1.2625 and lows at 1.2583 levels. The Canadian dollar edged lower against its U.S. counterpart on Tuesday and underperformed versus other major currencies as oil prices and U.S. stock index futures fell. The price of oil, one of Canada’s major exports, declined after a forecasting agency estimated world crude supply could overtake demand this year, potentially undermining producer efforts to curb supply. U.S. stock futures pointed to another dip at the open for Wall Street, potentially halting two days of gains that had somewhat eased investors’ nerves about a burgeoning market correction. Commodity-linked currencies such as the Canadian dollar tend to underperform when stocks fall. The U.S. dollar lost ground against a basket of major currencies including the Japanese yen amid speculation the Bank of Japan could be close to dialling back record levels of monetary stimulus. The Canadian dollar was last trading at 0.1 percent lower at C$1.2593 to the greenback, or 79.42 U.S. cents. The currency traded in a range of C$1.2567 to C$1.2606.

USD/JPY is supported around 107.00 levels and currently trading at 107.79 levels. It peaked to hit session high at 107.78 and made session lows at 107.38 levels. Japanese yen rose to a five-month high against the greenback on Tuesday on the back of broad-based selling of the dollar and speculation the Bank of Japan could be close to dialling back record levels of monetary stimulus. The yen has gained 1.5 percent against the dollar this month, benefiting last week from a rush by investors into currencies deemed safer amid the rout in equity markets. But while risk appetite has recovered this week, investors have continued to sell dollars and buy yen. The dollar was down more than half a percent against a basket of six currencies, reversing some of its gains last week, when it enjoyed its best performance since 2016. The yen rose as much as 1.1 percent to 107.41 per dollar, close to the high it hit in September at 107.32 yen. If the yen breaks through that, it will hit its best level since late 2016.Prospects of higher inflation globally have rattled investors this month and have helped drive equity market falls. Investors will be closely watching the release of U.S. consumer price index data on Wednesday for signs of inflation.

Equities Recap

European shares fell slightly on Tuesday as a flurry of corporate results failed to lift indexes and Wall Street pulled back ahead of Wednesday’s crucial data on U.S. inflation.

UK’s benchmark FTSE 100 closed down by 0.07 percent, the pan-European FTSEurofirst 300 ended the day down by 0.56 percent, Germany’s Dax ended down by 0.63 percent, France’s CAC finished the day down by 0.50 percent.

Wall Street climbed on Tuesday for a third straight session, buoyed by Amazon.com and Apple, while investors focused on upcoming inflation data that could upset the market’s fragile recovery.

Dow Jones closed up by 0.18 percent, S&P 500 ended down by 0.28 percent, Nasdaq finished the day up by 0.45 percent.

Treasuries Recap

U.S. long-dated Treasury yields slipped on Tuesday in quiet, range-bound trading, as investors looked to Wednesday’s U.S. inflation report that could shed more light on the pace of future interest rate increases by the Federal Reserve.

In late trading, U.S. 10-year yields fell to 2.840 percent from 2.855 percent late on Monday. U.S. 10-year yields hit 2.902 percent on Monday, the highest since January 2014.

U.S. 30-year bond yields fell to 3.128 percent, from Monday’s 3.136 percent. The yield on the maturity touched an 11-month peak of 3.139 percent on Monday.

Commodities Recap

Gold prices rose on Tuesday as the U.S. dollar slipped and markets anticipated the release of impending U.S. inflation data that may offer some clues on the pace of future U.S. interest rate increases.

Spot gold was up 0.4 percent at $1,327.52 per ounce by 1:34 p.m. EST (1834 GMT), earlier hitting a one-week high of $1,330.89 while U.S. gold futures for April delivery settled up $4, or 0.3 percent, at $1,330.40.

Oil prices ended largely unchanged on Tuesday as a weaker dollar spurred a rebound from an early slide after the International Energy Agency forecast supply could outstrip demand.

Brent futures hit a two-month low early, but the benchmark settled at $62.72 a barrel, with a 13-cent or 0.2 percent gain. U.S. West Texas Intermediate crude futures closed 10 cents, or 0.2 percent, lower at $59.19 a barrel.

(1645 ET/2145 GMT) Statistics New Zealand will release food price index for the month of January. The indicator posted a fall of 0.8 percent in the prior month.

(1830 ET/2330 GMT) The Faculty of Economics and Commerce Melbourne Institute will release Australia’s Westpac consumer confidence for the month of February. The index edged up 1.8 percent in January.

(1850 ET/2350 GMT) Japan’s Cabinet Office will release prelimiary gross domestic product for the fourth quarter. The economy grew at a pace of 0.6 percent in the previous quarter.
​

Key Events Ahead

(0800 ET/1300 GMT) Cleveland Fed President Loretta Mester speaks on the economic outlook and monetary policy at the Dayton Area Chamber of Commerce Government Affairs Breakfast, in Dayton, Ohio.

(1100 ET/1600 GMT) Federal Reserve Bank of New York is scheduled to release its fourth-quarter 2017 Household Debt and Credit Report in New York.

FX Beat

DXY: The dollar index slumped to a near 1-week low as investors awaited U.S. inflation data for clues on the pace of interest rate hikes. The greenback against a basket of currencies traded 0.4 percent down at 89.72, having touched a high of 90.57 on Thursday, its highest since Jan. 23. FxWirePro’s Hourly Dollar Strength Index stood at -67.39 (Bearish) by 1000 GMT.

EUR/USD: The euro rose to a near 1-week peak, as the greenback eased as much as half a percent against a basket of currencies, reversing some of its gains of last week. The European currency traded 0.4 percent up at 1.2342, having touched a low of 1.2205 on Friday, its lowest since Jan. 18. FxWirePro’s Hourly Euro Strength Index stood at -24.30 (Neutral) by 1000 GMT. Immediate resistance is located at 1.2365 (50.0% retracement of 1.2522 and 1.2205), a break above targets 1.2405. On the downside, support is seen at 1.2245 (Feb 7 Low), a break below could drag it lower 1.2205 (Feb. 9 Low).

USD/JPY: The dollar slumped to a 5-month low against the Japanese yen, as a sharp sell-off in stock markets drove traders seeking safety in safe-haven assets. The major was trading 1.0 percent down at 107.59, having hit a low of 107.42, its lowest since Sept. 8. FxWirePro’s Hourly Yen Strength Index stood at 113.18 (Highly Bullish) by 1000 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the FOMC member Mester’s speech for further momentum. Immediate resistance is located at 109.37 (61.8% retracement of 111.48 and 108.04), a break above targets 110.28. On the downside, support is seen at 107.40, a break below could take it lower 107.00.

GBP/USD: Sterling rose above the 1.3900 handle after data showed British inflation unexpectedly stayed close to its highest levels in six years in January. The economy’s consumer price inflation held at an annual rate of 3.0 percent, unchanged from the month before, while house prices in December rose by 5.2 percent annually as compared with 5.0 percent in November. The major traded 0.5 percent up at 1.3907, having hit a low of 1.3764 on Friday, it’s lowest since Jan 17. FxWirePro’s Hourly Sterling Strength Index stood at 27.04 (Neutral) by 1000 GMT. Immediate resistance is located at 1.3991 (21-DMA), a break above could take it near 1.4063. On the downside, support is seen at 1.3764 (Feb 9 Low), a break below targets 1.3700. Against the euro, the pound was trading 0.1 percent up at 88.74 pence, having hit a low of 88.87 pence earlier, it’s lowest since Feb. 7.

USD/CHF: The Swiss franc advanced to a 1-week high as investors rushed into safe-haven assets amid weaker trading sentiment. The major trades 0.6 percent down at 0.9335, having touched a high of 0.9469 on Thursday, it’s highest since Jan. 24. FxWirePro’s Hourly Swiss Franc Strength Index stood at 43.36 (Neutral) by 1000 GMT. On the higher side, near-term resistance is around 0.9445 (21-DMA) and any break above will take the pair to next level till 0.9500. The near-term support is around 0.9306 and any close below that level will drag it till 0.9256.

Equities Recap

European shares slumped following a flurry of mixed corporate results, while the greenback slumped to a near 1-week low as investors awaited U.S. inflation data.

Crude oil prices declined, despite a rebound in global stock markets and a weaker dollar which potentially supports more fuel consumption. International benchmark Brent crude was trading 0.05 percent down at $62.65 per barrel by 1031 GMT, having hit a low of $61.75 on Friday, its lowest since Dec. 7. U.S. West Texas Intermediate was trading 0.1 percent down at $59.29 a barrel, after falling as low as $58.06 on Friday, its weakest since Dec. 22.

Gold prices rallied to a near one-week high, boosted by a weaker dollar, while investors awaited U.S. inflation data for clues on the pace of interest rate hikes. Spot gold was 0.5 percent up at $1,329.09 by 1033 GMT, having hit a low of 1,306.96 on Thursday, lowest since Jan 14. U.S. gold futures were up 0.3 percent at $1,330 per ounce.

Treasuries Recap

The U.S. Treasuries jumped in what looks set to be another relatively uneventful day for major economic news in the US, with the only data release of note being the NFIB small business sentiment survey. The yield on the benchmark 10-year Treasuries plunged 2-1/2 basis points to 2.82 percent, the super-long 30-year bond yields slumped nearly 2 basis points to 3.11 percent and the yield on the short-term 2-year traded nearly 1-1/2 basis points lower at 2.06 percent.

The UK gilts traded slightly on the downside after the country’s consumer price inflation came in higher than expected in January, adding further pressure for policymakers to hike interest rates again, possibly as soon as May. The yield on the benchmark 10-year gilts, hovered around 1.60 percent, the super-long 30-year bond yields climbed tad up at 1.98 percent while the yield on the short-term 2-year slumped nearly 2 basis points to 0.70 percent.

The German bunds surged as investors await the country’s fourth-quarter gross domestic product (GDP), scheduled to be released on February 14 by 07:00GMT. The German 10-year bond yields, which move inversely to its price, slumped 3 basis points to 0.72 percent, the yield on 30-year note plunged 2-1/2 basis points to 1.33 percent and the yield on short-term 2-year traded 1 basis point lower at -0.58 percent.

The New Zealand government bonds closed Tuesday’s session on a higher note as demand for safe-haven instruments continued amid mild recovery in equities in a muted trading week that is scheduled to witness data of least economic significance. At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 2-1/2 basis points to 2.99 percent, the yield on 20-year also plunged 2-1/2 basis points to 3.51 percent and the yield on short-term 2-year closed 2 basis points lower at 1.88 percent.

The Japanese government bonds remained tad higher, following expectations of a decline in the country’s fourth-quarter gross domestic product (GDP), scheduled to be released today by 23:50GMT. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slipped 1/2 basis point to 0.06 percent, the yield on the long-term 30-year note fell nearly 1 basis point to 0.80 percent and the yield on short-term 2-year remained tad lower at -0.14 percent.

The Australian bonds sharply rallied during early Asian session as investors covered previous short positions ahead of the employment report for the month of January, scheduled to be released on February 15. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 2-1/2 basis points to 2.86 percent, the yield on the long-term 30-year note fell nearly 1-1/2 basis points to 3.51 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points lower at 2.00 percent.

Source: FXWire Media Round Ups

]]>http://m2m-vn.com/europe-roundup-sterling-rallies-upbeat-cpi-dollar-hits-5-month-low-yen-risk-aversion-european-shares-slump-tuesday-february-13th-2018/feed/0Crude Oil trades weak on rising US shale Oil production, good to sell on rallieshttp://m2m-vn.com/crude-oil-trades-weak-rising-us-shale-oil-production-good-sell-rallies/
http://m2m-vn.com/crude-oil-trades-weak-rising-us-shale-oil-production-good-sell-rallies/#respondTue, 13 Feb 2018 12:05:27 +0000http://m2m-vn.com/?p=16472Crude Oil trades weak on rising US shale Oil production, good to sell on rallies Major Support – $57.60 (100- day MA). US oil took support near 100- day MA and shown a mild recovery above $60 level. The commodity jumped till $60.80 yesterday. The main reason for declining crude oil prices was due to …

Crude Oil trades weak on rising US shale Oil production, good to sell on rallies

Major Support – $57.60 (100- day MA).

US oil took support near 100- day MA and shown a mild recovery above $60 level. The commodity jumped till $60.80 yesterday. The main reason for declining crude oil prices was due to increase in shale oil production and also Opec raised non cartel oil production growth forecast for second month. Oil hits low of $58.05 and is currently trading around $59.24.

International energy agency mentioned that extraordinary growth in US shale oil will force Opec to change its policy stance soon. US oil rigs rose by 26 to 791 highest level since 2015.

Technically, the pair is facing resistance around $60-60.12 (hourly Kijun-Sen and trend line joining $61.60 and $ 60.79) and any minor jump till $60.80 can be seen only above that level. Any break above $60.80 will take the commodity to next level till $61.35 (38.2% fibo)/$62.07.

On the lower side, near term support is around $58.90 and any violation below will drag the commodity till $58.05/$57.60.

It is good to sell on rallies around $59.85-90 with SL around $60.80 for the TP of $58.05/$57.60.

DXY: The dollar index declined, extending previous session losses, as global equity markets showed some sign of stability after the recent rout. The greenback against a basket of currencies traded 0.2 percent down at 89.94, having touched a high of 90.57 on Thursday, its highest since Jan. 23. FxWirePro’s Hourly Dollar Strength Index stood at -105.13 (Highly Bearish) by 0500 GMT.

EUR/USD: The euro rose, extending gains for a third straight session on the view that the European Central Bank will scale back its stimulus later this year amid a strong recovery seen in the eurozone economy. The European currency traded 0.1 percent up at 1.2302, having touched a low of 1.2205 on Friday, its lowest since Jan. 18. FxWirePro’s Hourly Euro Strength Index stood at 54.91 (Bullish) by 0500 GMT. Investors’ attention will remain on U.S. business optimism index and FOMC member Mester’s speech, amid a lack of significant economic data from Eurozone docket. Immediate resistance is located at 1.2328 (61.8% retracement of 1.2522 and 1.2205), a break above targets 1.2357 (10-DMA). On the downside, support is seen at 1.2245 (Feb 7 Low), a break below could drag it lower 1.2205 (Feb. 9 Low).

USD/JPY: The dollar declined against the Japanese yen as markets remained volatile ahead of US CPI later on in the week. The major was trading 0.3 percent down at 108.29, having hit a low of 108.04 on Friday, its lowest since Sept. 8. FxWirePro’s Hourly Yen Strength Index stood at 149.54 (Highly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. FOMC member Mester’s speech for further momentum. Immediate resistance is located at 109.37 (61.8% retracement of 111.48 and 108.04), a break above targets 110.28. On the downside, support is seen at 108.00, a break below could take it lower 107.30.

GBP/USD: Sterling gained as investors awaited UK CPI print, which is expected to show the cost of living dropped 0.6 percent month-on-month in January, while the core CPI, which strips out volatile items, is seen rising at an annualized rate of 2.6 percent against 2.5 percent in December. The major traded 0.1 percent up at 1.3852, having hit a low of 1.3764 on Friday, it’s lowest since Jan 17. FxWirePro’s Hourly Sterling Strength Index stood at -71.49 (Bearish) by 0500 GMT. Investors’ focus will remain on the UK producer price index and consumer price index, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.3991 (21-DMA), a break above could take it near 1.4063. On the downside, support is seen at 1.3764 (Feb 9 Low), a break below targets 1.3700. Against the euro, the pound was trading 0.1 percent down at 88.86 pence, having hit a low of 89.10 pence on Tuesday, it’s lowest since Jan. 17.

AUD/USD: The Australian dollar rose to a 6-day high after data showed domestic business conditions reached near-boom levels in January as sales and profits increased sharply. National Australia Bank’s index of business conditions climbed 6 points to +19 in January, while business confidence bounced 2 points to +12, the highest reading since April last year. The Aussie trades 0.1 percent up at 0.7867, having hit a low of 0.7758 on Friday; it’s lowest since Dec. 27. FxWirePro’s Hourly Aussie Strength Index stood at 87.98 (Slightly Bullish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7835 (5-DMA), a break below targets 0.7758 (Feb 9 Low). On the upside, resistance is located at 0.7915 (10-DMA), a break above could take it near 0.7967 (21-DMA).

NZD/USD: The New Zealand dollar advanced amid a rebound in broader risk sentiment which saw global equities rally strongly. The Kiwi trades 0.05 percent up at 0.7264, having touched a low of 0.7176 on Thursday, its lowest level since Jan. 10. FxWirePro’s Hourly Kiwi Strength Index was at 51.59 (Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.7297 (10-DMA), a break above could take it near 0.7350. On the downside, support is seen at 0.7176 (Feb. 8 Low), a break below could drag it near 0.7100.

Equities Recap

Asian shares retreated from two-month lows, boosted by Wall Street’s extended rebound from last week’s steep fall, while the greenback eased as investors remained cautious ahead of U.S. inflation data later in the week.

Crude oil prices rose, boosted by a rebound in global stock markets that followed sharp falls last week. International benchmark Brent crude was trading 0.5 percent up at $62.96 per barrel by 0436 GMT, having hit a low of $61.75 on Friday, its lowest since Dec. 7. U.S. West Texas Intermediate was trading 0.4 percent up at $59.59 a barrel, after falling as low as $58.06 on Friday, its weakest since Dec. 22.

Gold prices held gains, supported by a weaker dollar, while investors awaited U.S. inflation data for clues on the pace of interest rate hikes. Spot gold was trading 0.2 percent up at $1,325.69 an ounce by 0445 GMT, having hit a low of 1,306.96 on Thursday, lowest since Jan 14. U.S. gold futures were down 0.1 percent at $1,324.6 per ounce.

Treasuries Recap

The 10-year U.S Treasury yield stood at 2.849 percent lower by 0.006 bps, while 5-year yield was 0.004 bps down at 2.550 percent.

The Japanese government bonds remained tad higher Tuesday, following expectations of a decline in the country’s fourth-quarter gross domestic product (GDP), scheduled to be released today. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slipped 1/2 basis point to 0.06 percent, the yield on the long-term 30-year note fell nearly 1 basis point to 0.80 percent and the yield on short-term 2-year remained tad lower at -0.14 percent.

The Australian bonds sharply rallied during early Asian session as investors covered previous short positions ahead of the employment report for the month of January, scheduled to be released on February 15. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 2-1/2 basis points to 2.86 percent, the yield on the long-term 30-year note fell nearly 1-1/2 basis points to 3.51 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points lower at 2.00 percent.

The New Zealand government bonds closed Tuesday’s session on a higher note as demand for safe-haven instruments continued amid a mild recovery in equities in a muted trading week that is scheduled to witness data of least economic significance. At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 2-1/2 basis points to 2.99 percent, the yield on 20-year also plunged 2-1/2 basis points to 3.51 percent and the yield on short-term 2-year closed 2 basis points lower at 1.88 percent.

The Canadian government bond prices were higher across the yield curve, with the two-year up 1 Canadian cent to yield 1.783 percent and the benchmark 10-year rising 11 Canadian cents to yield 2.338 percent. The gap between Canada’s 10-year yield and its U.S. equivalent widened by 3.7 basis points to a spread of -51.6 basis points, its widest since Dec. 19.

• 13:00 Federal Reserve Bank of Cleveland President Loretta Mester speaks on the economic outlook at the Dayton Area Chamber of Commerce Government Affairs Breakfast – Ohio

• 08:00 Riksbank monetary policy meeting – Stockholm

Currency Summaries

EUR/USD is likely to find support at 1.2200 levels and currently trading at 1.2282 levels. The pair has made session high at 1.2289 and hit lows at 1.2232 levels. Euro strengthened against the dollar on Monday following its best week against the single currency in nearly 15 months, as U.S. stocks recovered a bit from the dramatic selloff that saw the S&P 500’s sharpest decline in more than two years. The selloff across asset classes forced investors betting against the U.S. currency to unwind their positions. The dollar also benefited as nervous investors bought the relative safety of some U.S. assets. Speculators’ net short U.S. dollar bets declined for the first time in six weeks, according to calculations by Reuters and Commodity Futures Trading Commission data released on Friday. The index that tracks the dollar against a basket of currencies was down 0.2 percent at 90.291, erasing some of the gains last week. The euro was up 0.25 percent from Friday’s close at $1.2283, after earlier hitting a day’s high of $1.2296. The euro suffered its worst week since November 2016 last week and remains almost three cents off its three year high of $1.2538 hit in January.

GBP/USD is supported in the range of 1.3765 levels and currently trading at 1.3825 levels. It reached session high at 1.3832 and dropped to session low at 1.3792 levels. Sterling edged lower against the greenback on Monday as sterling was weighed down by uncertainty among investors over whether Britain would succeed in securing a post-Brexit transition period. The pound skidded on Friday after the EU’s chief Brexit negotiator Michel Barnier warned a transition deal was far from assured. Those comments, as well as broad strength in the dollar amid a sharp stock market sell-off, handed sterling its biggest weekly falls since October, as investors worried that Britain could leave the European Union in a disorderly manner. The pound’s losses came despite a surprisingly hawkish policy meeting from the Bank of England, which said interest rates could rise sooner and by a bit more than investors were expecting. Markets moved to price in a 70 percent chance of a rate hike in May after the meeting, and sterling jumped by more than 1 percent against the dollar and euro, but its gains were short-lived. The pound slipped 0.1 percent to $1.3832, close to Friday’s three-week low of $1.3764. It was also 0.3 percent weaker against the euro at 88.82 pence.

USD/CAD is supported at 1.2552 levels and is trading at 1.2602 levels. It has made session high at 1.2621 and lows at 1.2553 levels. The Canadian dollar was little changed on Monday against its U.S. counterpart after hitting a six-week low at the end of last week, helped by higher oil and stock prices. The price of oil, one of Canada’s major exports, recovered some of last week’s steep losses as global equities steadied after their largest one-week slide in two years. The Canadian dollar was trading 0.1 percent lower at C$1.2590 to the greenback, or 79.43 U.S. cents. The currency traded in a range of C$1.2556 to C$1.2607. On Friday, it touched its weakest since Dec. 27 at C$1.2690 after domestic data showed the biggest decline in jobs since January. Commodity-linked currencies, such as the Canadian dollar tend to underperform when stocks fall. Still, speculators raised bullish bets on the Canadian dollar for the fifth straight week, data from the U.S. Commodity Futures Trading Commission showed on Friday. As of Feb. 6, net long positions had risen to 40,164 contracts from 33,465 a week earlier. The Canadian Real Estate Association will release its monthly home sales report on Thursday. Canada’s manufacturing sales report for December is due on Friday.

AUD/USD is supported around 0.7800 levels and currently trading at 0.7843 levels. It hit session high at 0.7847 and made session lows at 0.7820 levels. The Australian dollar strengthened against US dollar on as a rebound in equity markets restored risk appetite, though sentiment was still jittery ahead of U.S. inflation data. It also helped higher-yielding emerging market currencies as well as commodity-linked currencies like the Australian and Canadian dollars. Worries about inflation in the United States surfaced after data this month showed jobs growth surged and wages rose, bolstering expectations that the U.S. labor market would hit full employment this year. U.S. inflation data for January is due on Wednesday and the U.S. Federal Reserve next meets on March 20-21. World shares rallied on Monday in a broad advance that brushed off fresh rises in global bond yields that have been driven by inflation fears as investors shifted asset allocations after the worst week in global markets in the past two years. The Australian dollar was last up 0.4 percent at $0.7844, after falling as deep as $0.7759 on Friday which was the lowest since late December. The Aussie has slipped in eight of the last 10 sessions amid a financial market rout which saw a rapid flight to safer assets such as the yen and cash.

Equities Recap

European shares rebounded from six-month lows on Monday as jitters over a sudden spike in volatility that wiped off $1 trillion in market capitalisation last week appeared to ease.

UK’s benchmark FTSE 100 closed up 1.2 percent, FTSEurofirst 300 ended the day up by 1.33 percent, Germany’s Dax ended up by 1.7 percent and France’s CAC finished the day down by 1.5 percent.

Technology and financial shares led Wall Street’s main indexes higher for a second straight session on Monday, with steady bond yields and volatility also helping the stock market bounce back from its worst week in two years.

Dow Jones closed down by 0.02 percent, S&P 500 ended down 0.35 percent, Nasdaq finished the day down by 0.50 percent.

Treasuries Recap

U.S. Treasury yields rose on Monday, with benchmark 10-year yields hitting a four-year high and those on 30-year bonds climbing to an 11-month peak, as a stock rally and improving risk appetite diminished the safe-haven appeal of government debt.

In late trading, U.S. 10-year yields were up at 2.851 percent, from 2.831 percent late on Friday. Earlier in the session, 10-year yields hit 2.902 percent, the highest since January 2014.

U.S. 30-year bond yields rose to 3.145 percent , from Friday’s 3.139 percent. The yield on this maturity touched an 11-month peak of 3.139 percent earlier in the session.

.Commodities Recap

Gold prices rose on Monday as the dollar eased, but gains are expected to be muted ahead of inflation data from the United States later this week that could mean U.S. interest rates rise faster than expected.

Spot gold was up 0.5 percent at $1,323.16 an ounce by 2:26 p.m. EST (1926 GMT). It has fallen more than 3 percent since hitting a 17-month peak at $1,366.07 in January. U.S. gold futures settled up 0.8 percent at $1,326.40.

Oil rose on Monday, as it began to recoup some of last week’s steep losses as global equities steadied after their biggest one-week decline in two years.

Source: FXWire Media Round Ups

]]>http://m2m-vn.com/americas-roundup/feed/0Oil in global economy series: key Oil market updateshttp://m2m-vn.com/oil-global-economy-series-key-oil-market-updates/
http://m2m-vn.com/oil-global-economy-series-key-oil-market-updates/#respondMon, 12 Feb 2018 12:33:01 +0000http://m2m-vn.com/?p=16449Oil in global economy series: key Oil market updates While the oil market continues to focus on supply/demand fundamentals, these are some key updates that you need to keep a tab on, U.S. oil rig count: The United States is continuing to see a surge in production. According to the latest report, the production rose …

While the oil market continues to focus on supply/demand fundamentals, these are some key updates that you need to keep a tab on,

U.S. oil rig count: The United States is continuing to see a surge in production. According to the latest report, the production rose to 10.251 million barrels per day. Despite fewer rigs operating compared to 2014/15, the production efficiency has pushed the overall production higher. As of latest report, the numbers of operating rigs rose from 765 to 791. The numbers of operating rigs have increased more than 150 percent since bottoming in May last year.

Venezuela crisis: Crisis continues in Venezuela. A country which has the largest reserve of crude oil is reportedly running low on gasoline. The oil production is dwindling too. The latest survey report by Reuters suggests that production declined to just 1.6 million barrels per day in January. The latest survey by Platts put January production at 1.64 million barrels per day.

OPEC compliance: According to the latest production survey by Platts, the OPEC remains compliant with the agreement. In January, total OPEC production was 32.46 million barrels per day in January, according to Platts.